"Peak Oil"– the theory that the planet is in imminent danger of running out of oil– is not, as yet, a mainstream media shibboleth. But God knows they're flirting with the idea. After all, it jibes nicely with the dare-I-say-it liberal idea that American is an arrogant gas/oil hog whose energy/foreign policy chickens are coming home to roost. New York Times columnist Paul Krugman provides an excellent analysis of the Peak Oil perspective, outlining the three possibilities: nonsense (it's speculation), maybe (it's the market catching-up with growing worldwide demand) and yes (we're fucked). Krugman's eminently sensible argument takes a swing to the left when he cites billionaire political activist George Soros (of all people) for the speculation theory. From there, it's a short trip to yup, we're screwed, and, by implication, still screwing others. "Rich countries will face steady pressure on their economies from rising resource prices, making it harder to raise their standard of living. And some poor countries will find themselves living dangerously close to the edge — or over it. Don’t look now, but the good times may have just stopped rolling." Damn! That sucks. 

Not that you'd know it from reading Jamie Lareau's lead in Automotive News [sub]: "As General Motors works on its corporate turnaround, a smaller version is under way at its Saturn brand." To use a phrase popular back when Saturn was GM's import fighter (as opposed to its import provider), gag me with a spoon. So how does Lareau justify his faith in Saturn's future? Not very well. "Customers have yet to arrive in a huge numbers. Through March, Saturn's U.S. sales totaled 48,306 units, down 15.3 percent from 2007." Ain't that the truth. Apparently it's not the whole truth; Lareau feels obliged to dredge-up a two-month old quote from GM CEO Rick Wagoner re: Saturn's recovery: 'We knew what we were doing, which is to change the profile of the kinds of products that we sell at Saturn from basically low-priced cars to cars that compete on the basis of being great cars, European influence, et cetera. It's fair to say that's not an easy assignment.'" Et cetera? Anyway, is it also fair to say Saturn's failed, considering the brand's shot its proverbial new product wad and still managed to under-perform a declining U.S. new car market? Of course not. Lareau gives the last word to Saturn's recently-snubbed brand manager Jill Lajdziak. "There's no question we have to continue to build the awareness of our new products. That doesn't happen overnight. You don't just walk into a segment. You have to earn your way into the segment." 

Automotive News [sub] reports that the growing paucity of parts from American Axle has "forced General Motors to eliminate a shift today at its auto assembly plant in Oshawa, Ontario. GM also said it slowed production of four-speed transmissions in Ypsilanti Township, Mich." The obvious question: who cares? Aside from no one in the first instance (LaCrosse) and fleet buyers in the second (Impala). OK, that's a bit harsh (Mikey). But the fact that the slowdown/shutdowns caused by the eight-week old United Auto Workers' (UAW) strike at American Axle hasn't got GM execs in a lather is either a condemnation of the affected products' appeal or management acumen, or both. Anyway, for those of you keeping score, the AA strike has now impacted 32 GM factories. And then there's the unresolved UAW strike at Lansing Delta (Enclave, Outlook, Acadia) and the looming strike at Fairfax (Malibu). What was that about bang vs. whimper?

Is Indiana's $20k per station taxpayer E85 conversion payout proving popular with pump jockeys? “The phone has been ringing off the hook," reports Cary Aubrey, program manager for Bioenergy Development at Indiana State Department of Agriculture. Considering that E85 conversion costs ten times that amount, and doesn't exactly do the honey fly thing with consumers, what's with the telephonic deluge? Our friends at Ethanol Producer magazine reveal that the subsidy is going to… government agencies. “It used to be stated that only public fueling sites could take effect of this opportunity,” Aubrey said. “Now it’s been opened also to what we consider local units, which would be towns, cities, counties, or township fleets.”  But wait, that's not all (as if you thought it was)! "Consumers" at these sites receive an 18-cent sales tax deduction on every gallon of E85 sold. As they have done since July 2007. Do these flex-fuelers know the shell game going on? Do they Hell. “I think the soccer moms have figured out ’hey, I’m driving a flex-fuel vehicle,'" Aubrey obfuscates. "'I can go over here and fuel and its 50-60-70 cents cheaper.’” Not to mention E85's decreased mileage. Literally.

Oh dear. Looks like Florida, the wang-shaped state, passed a transportation bill through the Senate with an amendment imposing a $60 fine on truck owners who choose to dangle Truck Nutz (AKA Bullz Ballz, Truck Balls, Bulls Balls) from their trailer hitches. Talk about your tax dollars at work. My opinion on this is pretty cut and dried — what could matter less? Seriously, you want me to believe that a bunch of adults tasked with running one of the most populous and prosperous states in the Union are worried about plastic reproductions of bull testicles? Look, hanging Truck Nutz off your F-150 is stupid. Taking away someone's right to hang said Nutz is even stupider. Remember, if you outlaw Truck Nutz, then only outlaws will have Truck Nutz. And one more thing — this is taking place in Tallahassee, the only state capital that has a drive through liquor store next to a drive through porn shop three blocks down the street. What does that have to do with Truck Nutz? Nothing, but I'm just saying. Yeah, so, you?

Yet another major manufacturer is jumping into the entry-level segment defined by Tata Motors' Nano subcompact. Reuters reports that Mitsubishi is developing a low-cost car for the Chinese and Thai markets, based on its Kei-class city car platform. Mitsu Prez Osamu Masuko announced the project at the Beijing Auto Show. "The mini vehicle business in a sense is a weakness because they are only sold in Japan," Masuko said. "But we can turn this into a strength by building a global car using the platform." The Japanese government-mandated 660cc engine will be replaced by a one-liter unit for export, with the resulting ride priced at just shy of $10k. With North American sales plummeting, Mitsubishi is joining the industry trend of looking to developing markets for sales, both from entry-level models and as a partner to suppliers of engines for Chinese manufacturers. Mitsubishi's Chinese engine factory partners will be increasing capacity to some 900k units per year, up from 470k, as Chinese demand booms.

London's controversial congestion charge suffered a setback last week, when Transport For London (TFL) admitted that the charges to enter central London have not improved traffic. Although TFL claimed that the £8 daily charge had produced a thirty percent improvement in congestion after its introduction in 2003, gains have been rolled back to the point where improvements have been reversed. The Automobile Association explains the conundrum to Courier Exchange, saying "The trouble is, by closing off side streets and short cuts and re-phasing traffic lights for pedestrians – all for laudable reasons – TfL has stifled traffic. Add to that pavement build-outs, re-engineered junctions, and you can see why congestion is rising." This likely comes as bad news to London Mayor Ken Livingstone who is currently running for re-election on a platform that includes raising the congestion charge to a whopping $50. 

Automotive News reports that Th!nk is about to offer their new City car for sale in the USA. The Th!nk City glides from rest to 30mph (ha!) in 6.5 seconds, tops-out at just over 60 mph and sports ABS, dual airbags and air con. Th!nk claims she'll go (slightly) more than 100 miles between charges. Obviously, not a road tripper, but for running down the street to buy orange juice, not a bad option. Especially if your bicycle has a flat. Aside from folks being put off by the City's diminutive size, we only foresee one real hurdle — the damn price. Th!nk wants you (yes you) to cough-up somewhere between $15k and $17k for the City. That's some serious cash– especially when compared to $12k for a Smart ForTwo or $15k for a "real" car like a Suzuki SX4. On top of that, Th!nkers are going to be charged an additional $100 – $200 per month for battery rental. Yeesh. And here's our favorite part — Tesla's making the batteries! That's it — I'm starting an Electric Lawsuit Watch series. 

My next door neighbor is one of those classic 'car traders.' He buys, fixes, drives, fixes, drives, fixes, etc. When the repairs finally get to be too much time and hassle, he sells the car. I've seen a lot of nameplates come and go through his driveway. Hondas and Nissans stay for a while. Saabs require constant weekend tinkering. And Volkswagens need more plastics than a Barbie factory. Only one brand has stuck around, for nearly a decade now: his family Volvo wagon. And therein lies the tale.

For those attending the 36th ADAC Zurich 24 Hour Race 2008 in May, Toyota has a treat for you. Motor Authority is reporting that a prototype racing version of the as yet to finalized LF-A uber-Lexus will be running round the 'Ring. This impresses us because any 24 Hour race is murder on a vehicle. But one at the Nurburgring? That borders on suicidal. Which we like. The final production specs haven't been released/announced yet, but just to jog your memory we're talking about a 4.8-liter V10 kicking out more than 500 horsepower that powers the hot Lexus to more than 200 mph. This prototype racer raises the bar with bigger wheels and brakes, a Superbird-inspired rear wing, tenny-tiny racing style side mirrors; and at least a dozen new inlets, scallops and scoops. Plus, the inside is stuffed with carbon fiber and a roll cage. With the soon-to-be on sale Spec-V version of the Nissan GT-R already lapping the Nurburgring in an insane 7:25 and most likely embarrassing the hell out of Chevy ZR-1 Chief Engineer Tadge Juechter's claim that the Blue Devil will, "beat any production car's track record anywhere in the world," what on earth will this Lexus test mule kick up? (Who cares that the video voiceover is Japanese– just listen to that engine!)

Despite the fact that Japan has some of the lowest rates of auto theft in the entire developed world, Honda is introducing an on-board navigation feature which will alert drivers when they park near reported crime hotspots. The system will automatically route information about criminal activity from police computers to participating navigation systems, providing news of recent thefts, damaged vehicles and break-ins. The system will also rate districts by risk levels, telling drivers which vehicular crimes have afflicted the immediate area. Honda has not announced whether the system will be offered outside of Japan. For now US motorists will only be able to monitor the police wirelessly. Priorities.

TheMustangNews.com has been keeping their ears to the ground for some time now, listening for whispers of the rebirth of the 5.0 Mustang. Although they couldn't get Ford USA to spill the beans, they have found proof from Ford Australia that US development and production of a 5.0-liter V8 is indeed in the works. Ford Australia boss Bill Osborne let the 5.0 development hint slip when discussing the new Ford Falcon with stuff.co.nz. Osborne revealed that Ford Australia was debating whether to keep the current Aussie-produced 5.4-liter BOSS V8 for new, hot Falcons, or replace it with a "5.0-litre V8 to be developed and built in North America for the Ford Mustang." While the Aussies dream of turbo- or supercharging the 5.0, it's  likely to sell stateside only in it's naturally-aspirated 350 – 375 hp form. CAW President Buzz Hargrove had hinted earlier that a 5.0 V8 could be produced at Canada's Windsor Ontario plant. So it looks like high-school 5.0 dreams may come true for the few latter day pistonheads who can afford the gas.

New car sales in the U.S. are depressed (recessed?), but sales of hybrids are up. While accounting for only 2.2 percent of the total U.S. market share, CNN says "Hybrid cars [are] flying out of showrooms." Indeed. Industry sales of some 350k hybrids translated into a 38 percent jump in '07. Toyota's Prius captured 51 percent of the hybrid market. Although most analysts see rising gas prices as the main sales driver, CNN trots out a tree hugger to convince you that many if not most consumers are [still] buying Priora to make a statement: "My decision is a very political decision," asserts Kim Fenske. "I want to get people in this country off their dependency on foreign oil." Anyway, R.L. Polk industry analyst Lonnie Miller figures hybrid sales increased because buyers have more non-goofy-looking options. "It's a good call on automakers' parts to not make their hybrids so funky and out of body style than what's already out there." Yes, well, Miller says 2008 hybrid sales should increase by 30 percent or more. "I can't see the hybrid category totally chilling out." Dude.

Speaking at the Beijing auto show, GM CEO Rick Wagoner went on the E85 offensive. The automaker's Beancounter-in-Chief ripped into a recent United Nations (UN) report claiming that ethanol production is warming the globe and reducing vital food supplies (a.k.a. a "crime against humanity"). Wagoner described the UN report as "shockingly misinformed." Yep, an army of scientists from all over the world has nothing on Rick Wagoner. Yes yes; the UN has a bureaucracy to rival GM's and its own political axe to grind. But more importantly, this kind of commentary from Wagoner [via the Financial Times] highlights GM's breathtaking arrogance and a failure to realize the development money they've spent on ethanol so far is a sunk cost. Wagoner tried to deflect attention the morality of raising cane in former rainforests and making corn juice out of food crops. "Oil prices are a far bigger driver of higher food prices than ethanol." Ain't moral relativism grand?

It's nice to see that Lotus is finally stabilizing– at least to the point where it can afford to develop their model range. In these fuel conscious times, legendary Lotus founder Colin Chapman's philosophy of increasing performance by "adding lightness" is due for a major resurgence. As fans of the brand know, Lotus will soon release a brand new 2+2 coupe. It's reportedly larger than the Europa (and hopefully prettier); a promising successor for the Esprit. We also know that the new car will use the Europa/Exige platform with a slightly elongated wheelbase. This reminded me of the attractive Lotus M250 concept car from 2000. Many elements of that car are suited for a production version. So I freshened it up and trimmed it for assembly. And yes, there's gold in them thar' hills!

[For more Avarvarii photochopistry, click here]